Thursday, September 9, 2010

VJAS Demands Rs.4,500 as Cotton Procurement Price-TIMES OF INDIA

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VJAS Demands Rs.4,500 as Cotton Procurement Price

TNN, Sep 10, 2010, 06.53am IST

NAGPUR: Vidarbha Jan Andolan Samiti (VJAS), an advocacy group representing cotton farmers, has demanded an increase in the minimum support price (MSP) of cotton from the current 3,000 a quintal to 4,500.

It is also strongly objecting to the recommendation of the Maharashtra State Co-operativeCotton Growers Marketing Federation Limited (Mahacot) to the central government to raise cotton MSP to 3,500, when spot market prices and future trading rates were ruling above 4,000, Kishor Tiwari of VJAS said here on Thursday.

"Since last four months, cotton bales were being quoted above 35,000 and cottonseed is being sold above 1,500 a quintal. Future trading till December in national and international commodity exchanges is showing a bullish trend amid reports of massive cotton crop losses in India, China, Pakistan as well as in the United States because of bad weather conditions," Tiwari explained.

He said that cotton federation chairman NP Hirani's recommendation of 3,500 as MSP was ridiculous as it would only benefit the trading community, who can get the commodity cheap from the farmers and take advantage of the export market. "We will not allow this conspiracy by cotton traders and Mahacot," said Tiwari.

He claimed reports indicated heavy losses in kharif season 2010-11 in areas under cultivation, which is spread over 110 lakh hectares. Excessive rains have damaged most of the standing Bt cotton crop and even as cultivation cost has doubled, because of higher vegetative growth of weeds and fertilizers needed for Bt crop," said Tiwari.

"Only a price of 4,500 can help cotton growers tide over the difficult situation caused by excessive rains," the VJAS leader stressed.